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The Republic of Kazakhstan The Republic of Kazakhstan Inception report on Targeted Social Assistance Scheme Decent Work: Integrated Approach to Social Sphere in Kazakhstan Bilateral Project for Technical Cooperation International Labour Office (ILO) - Subregional office for Eastern Europe and Central Asia - UNDP Country Office in the Republic of Kazakhstan Currency Equivalents (as of 3 June 2003) Currency Unit : Tenge USD 1 = 151.2 Tenge Abbreviations ADB - Asian Development Bank EUROSTAT - Statistical Office of the European Communities HBS - Household Budgetary Survey ID - Individual Database ILO - International Labour Office KILM - Key Indicators of the Labour Market LED - Local Economic Development LFS - Labour Force Survey MOLSP - Ministry of Labour and Social Protection NGO - Non-Governmental Organization OECD - Organisation for Economic Co-operation and Development PAYG - Pay-as-you-go PHS - Poor Households Survey SIF - Social Insurance Fund SSD - Social Security-related Database SPPC - State Pension Payment Centre TSA - Targeted Social Assistance TA - Technical Assistance UNDP - United Nations Development Programme WB - World Bank Table of contents Introduction 1 Chapter 1 Background information 2 1.1. The social safety net system – social benefits and social assistance 2 1.2. The Targeted Social Assistance (TSA) scheme in Kazakhstan 2 1.2.1. Characteristics of Targeted Social Assistance 2 1.2.2. Defining eligibility to receive TSA 4 1.2.3. Measures to combat poverty 5 1.3. Social security benefits in Kazakhstan 6 1.3.1. Retirement pension scheme 6 1.3.2. Other social security benefits 7 Chapter 2 Findings of the UNDP/ILO joint mission 8 2.1. TSA-related findings during mission 8 2.1.1. Data collection and availability 8 2.1.2. Wages and unemployment in Kazakhstan 8 2.2. Other findings resulting from meetings during the joint mission 9 2.2.1. Requests of other departments of MOLSP 9 2.2.2. Findings of the meeting with the World Bank in Astana 9 2.2.3. Findings of the meeting with the Asian Development Bank in Astana 9 Chapter 3 Technical Assistance on the Targeted Social Assistance 11 3.1. Purpose of the Technical Assistance on the Targeted Social Assistance Scheme 11 3.2. Methodology of implementation and key activities 11 3.3. Expected output 12 Chapter 4 Legislation related to Social Assistance in Kazakhstan 14 Chapter 5 Publications (including statistical publications) 15 Chapter 6 Statistics and documents (handouts and copies collected during the mission, all in the Russian language) 17 Annexes 19 Statistical Annexes 25 Introduction The Government of the Republic of Kazakhstan requested the Technical Assistance to the United Nations Development Programme (UNDP) Kazakhstan and the International Labour Office (ILO) Moscow Office to assess and improve its Targeted Social Assistance (TSA) scheme in Kazakhstan. The main objectives of this study are to (1) examine the current TSA system, (2) develop methodological frameworks for TSA which suit the present situation in Kazakhstan, and (3) strengthen the capacity to implement the appropriate TSA methodologies. A fact-finding UNDP/ILO joint mission to Astana and Almaty was undertaken from March 17-21, 2003.1 The mission participants from UNDP Kazakhstan were: Ms. Svetlana Islamova, Senior Programme Coordinator of the UNDP Kazakhstan Almaty Office, Ms. Dina Nurshaikhova, (participated in Astana round only), Poverty Dialogue Project Manager, UNDP Kazakhstan Astana Office, and Ms. Maral Sheshebekova, (participated in Astana round only), Poverty Dialogue Project Assistant Manager, UNDP Kazakhstan Astana Office. The mission participants from ILO Moscow were: Ms. Martina Lubyova, Senior Employment Specialist of the ILO Moscow Office, Ms. Mariko Ouchi, Associate Expert on Social Security of the ILO Moscow Office, Mr. Talgat Umirzhanov, the ILO National Correspondent in Kazakhstan, and Ms. Svetlana Misikhina, External Collaborator of the ILO Moscow Office. Based on discussions with various bodies related to the TSA scheme, the mission team reached a thorough understanding with the Government on the objectives and scope of, and possible ways to implement, Technical Assistance.2 The Technical Assistance on the TSA scheme will focus on reviews of (1) household-related concepts, and (2) TSA in Kazakhstan, within a framework of comparison with international experience with social assistance schemes. The review of household related concepts would clarify the definitions of household and household income. These definitions will then form the basis of a proposal to calculate actual household income using existing databases. The review of TSA in Kazakhstan by drawing on international experience with social assistance schemes will be based on case studies with different systems in several countries both in Europe and in the CIS. This report presents the main findings of the UNDP/ILO joint mission and indicates the future steps of Technical Assistance (TA) concerning the TSA scheme in Kazakhstan. Chapter 1 provides an in-depth explanation of the present TSA scheme as well as background information about social security schemes in Kazakhstan. Chapter 2 presents the main findings of the joint missions, related to the TSA scheme in particular. Chapter 3 gives an outline of TA by explaining the focus, methodology and planned activities under the implementation of the project. Chapter 4 shows the list of legislation related to social assistance in Kazakhstan, and Chapter 5 and 6 provide lists of publications and other documents collected throughout the mission. 1 Refer to Annex 1 for details of the programme of the UNDP/ILO joint mission from March 17-21, 2003. 2 Refer to Annex 2 for details of the list of persons contacted during the fact-finding mission. Chapter 1 Background information 1.1. The social safety net system – social benefits and social assistance There are 22 types of social benefits in addition to targeted social assistance (TSA) currently available in Kazakhstan. The social safety net system in Kazakhstan mainly consists of state social benefits, special state social benefits and TSA.3 State social benefits, financed from the central budget, are a part of the state social protection system and represent periodical monetary transfers to citizens in need due to disability, loss of the family breadwinner, or old age.4 Special state social benefits, seven types financed from the central budget and nine types financed from the local budgets, are monetary transfers to those who need social protection, and are given regardless of other types of benefits.5 Persons eligible for the benefits include those who participated in or were disabled during the Great Patriotic War, families of lost military/policemen, families of persons lost as a result of the Chernobyl disaster and other radiation disasters and accidents, persons rewarded with orders and medals of the Former Soviet Union for their hard work during the Great Patriotic War, disabled persons classified in three degrees, depending on the degree of disability, disabled children under the age of 16, mothers of large families, families with four or more children, and victims of political repression.6 State TSA is a monetary transfer to persons or families with monthly incomes below the poverty line, as established in each oblast, and in Astana and Almaty cities.7 Citizens of Kazakhstan, refugees, foreigners and persons without citizenship having a residence permit and permanently residing in Kazakhstan are eligible for TSA if they have an average per capita income below the poverty line. 1.2. The Targeted Social Assistance (TSA) scheme in Kazakhstan 1.2.1. Characteristics of Targeted Social Assistance The Social Assistance scheme, a decentralised means-based social assistance scheme for poor households, has started its operation in Kazakhstan in 2000. The Targeted Social Assistance (TSA) scheme was introduced only in January 2002 to improve the existing social assistance scheme. The Law “On the State Targeted Social Assistance”, effective January 1, 2002, is considered a part of the poverty alleviation programme in Kazakhstan, and regulates the provision of targeted benefits to the poor. Local governments are fully responsible for organizing and delivering TSA. Under the local governments are divisional commissions responsible for determining TSA recipient families. The decisions to provide TSA are made by examining family information on social cards. These social cards have detailed information such as family composition and income (including in-kind income, consumption from land plots, and calculations of benefits if they are TSA recipients).8 The main purpose of the social card is to identify those who need TSA, based on individual and household income levels. At present, all 3 In addition, there is so-called “state special benefits”, financed from the central budget. State special benefits are provided to those working under harmful and or hazardous conditions. 4 Law “On State Social Allowances Due to Disability, Loss of Bread Winner and Old Age in Kazakhstan”, dated June 16, 1997. 5 Law “On Special State Allowance in Kazakhstan”, dated April 5, 1999. 6 Law “On Special State Allowance in Kazakhstan”, dated April 5,1999. 7 Law “On Targeted Social Assistance”, dated July 17, 2001. 8 Refer to the sample social card, attached to the statistical annex. information on the social cards is compiled at the district level, but the Information and Analysis Center under the Ministry of Labour and Social Protection (MOLSP) has developed software to compile all the
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